BusinessDay
Nigeria's leading finance and market intelligence news report.

Importation, forex scarcity, drive aviation fuel price hike – Abdulmutalib

Continuous importation of Jet A1 used by aircraft, inability of airline operators to have easy access to foreign exchange and airport taxes among others have been attributed to the skyrocketing price of the product in Nigeria.

Rabiu Abdulmutalib, General Manager, TotalEnergies Nigeria in his presentation at a conference organised by aviation correspondents in Lagos, recently said that unless the aformentioned challenges are resolved, the prices of the products would continue to rise in the country.

A litre of aviation fuel in the domestic scene goes as high as N305 and N315 per litre, depending on the airport an airline is buying from.

According to him, the inability of local refineries to refine the product locally, high investment in logistics and high cost of aviation fuel handling equipment like refuellers, hydrant dispenser/servicers and filtration systems are also contributed to the sordid situation in the local market.

Read Also: Nigeria’s aviation fuel price up 100% as Ghana reduces price by 20%

To address the current situation, Abdulmutalib canvassed for proper coordination among relevant government agencies in monitoring and enforcement of all standards along the supply chain.

Some of the agencies he mentioned included the Department of Petroleum Resources, the Federal Airports Authority of Nigeria (FAAN), Nigerian Civil Aviation Authority (NCAA), Standards Organisation of Nigeria (SON) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), amongst others.

To avoid contamination of the product, Abdulmutalib opined that organisaitons should not compromise any of the established international and local regulations on handling JET A1 from refinery to aircraft, adherence to international specification checklist for aviation fuel recognised by major aviation fuel suppliers in the world and checking competencies and capacities of laboratories contracted for testing parameters of the product in the country.

He also appealed for government intervention for easy access to forex especially aviation fuel importers and national sensitisation and awareness on monitoring filtration phase out from all aviation handling systems in Nigeria before the deadline of July 2023.

Whatsapp mobile

Get real time updates directly on you device, subscribe now.